Ad Top Banner

Petrol price drops as MVA, RFA levies rise to previous levels

The Ministry of Mines and Energy has slashed petrol prices by N$1.00, but increased the Road Fund Administration (RFA) road user charges and the MVA Fund levy to their previous levels. 

This was after the RFA and the MVA Fund had warned that the government’s fuel price relief measures introduced in May would hurt their operations. The government slashed the RFA’s Road User Charge from 148 cents to 74 cents, while the MVA Fund levy was cut to 37.725 cents from 47.7 cents to help motorists with low fuel prices. 

“The Ministry has also resolved to reinstate the road user charges and the MVA levy back to their original levels, while the NAMCOR levy will remain at its current level until further notice,” the Ministry of Mines and Energy revealed on Monday. 

The MVA Fund blamed the levy cut for delaying its plans to establish a multimillion-dollar trauma centre, which will have an initial capacity of 92 beds, and is expected to be realised through internal and external funding. 

On the other hand, the RFA had warned that the extension of the levy cuts will force the parastatal to terminate road maintenance contracts because it will no longer afford contractors. 

However, despite introducing the new measures, the Energy ministry left the NAMCOR levy unchanged as the government is planning to cancel the charge advanced to state-owned entities. 

NAMCOR used to receive 7.6 cents for every litre of fuel sold in the country, but the figure was later slashed to 3.8 cents under the government’s fuel price relief measures aimed at containing a spike in fuel prices. 

Meanwhile, the Mines and Energy ministry has announced that the petrol price for October 2022 will decrease by N$1.00, while diesel prices will remain unchanged, effective on Wednesday (5 October 2022), citing an over-recovery on petrol of 234 cents a litre and under-recovery of diesel of 33 cents per litre.






Rate this item
(0 votes)
Last modified on Wednesday, 05 October 2022 23:55

Related items

  • ‘Nandinomics’: Economic outcomes from ruling party’s elective congress

    Namibia’s ambitions to become a leading green hydrogen and fossil fuel producer remain undeterred by the ruling party’s elective congress outcome, which saw Deputy Prime Minister and Minister of International Relations Netumbo Nandi-Ndaitwah elected Swapo Vice President, making her the front runner to lead the party in the upcoming general elections in 2024, analysts have said.

  • Namibia to pilot US$4.2bn aviation market

    Namibia is set to participate in the piloting of the Single African Air Transport Market (SAATM), which is expected to see a 27% reduction in air fares, create close to 600,000 jobs and add US$4.2 billion to the continent’s gross domestic product.

  • Economy partially out of the woods — !Gawaxab

    Bank of Namibia Governor Johannes !Gawaxab says Namibia’s economy has turned the corner from the bleak 2016-2020 period that was marred by contractions where the domestic economy suffered negative growth.

  • 300k Namibian households unelectrified

    Namibia’s overall electrification rate is estimated to be 50% which translates into about 300,000 unelectrified households, The Ministry of Mines and Energy has said.